Church insurance fund holds key to future of Qld steel project

Published: 02 September 2014

The future of a key Gladstone project in northern Queensland appears to be in the hands of the Church's insurance fund. It could be a major key to the success of the city's steel project and thousands of local jobs, reports The Observer.

The Church's shareholding looks like determining the outcome of the shareholders' vote next week. A majority negative vote would almost certainly lead to the liquidation of the company, which would result in a total loss to all shareholders.

But shareholders have nothing to lose by voting the company out of administration, according to those behind the scenes. A number of shareholders are yet to vote, and have until 11am on Tuesday, September 2 to lodge their vote with the administrator.

Hundreds of small investors in Gladstone and Australia have supported the rescue group, which has become Gladstone Steel Pty Ltd, to save the project. But before it can move forward the original company has to come out of administration, which requires the approval of the existing Boulder Steel shareholders.

GSPL projected 1800 full-time jobs and 5500 related jobs in Gladstone Steel, which would also provide a profitable outlook for existing Boulder Steel shareholders via the gifting of equivalent equity in GSPL.

Former rescue group co-ordinator, GSPL director Paul Sundstrom said they had stopped contributions to the project for the time being because of "unexpected uncertainty" the group was faced with to achieve the vote.